KEY HIGHLIGHTS
US Fed Rate Decision And Powell's Speech — As It Happened
The US Federal Reserve's FOMC decided to keep interest rate steady at 4.25-4.5% range for the third time in a row. The decision was unanimous.
The policy statement highlighted the uncertainity over the health of the US economy from the tariff wars sparked by President Donald Trump.
In his media address, Chairmen Jerome Powell said the risks of higher unemployment and inflation have risen, and the current policy stance leaves the Fed “well positioned” to address economic developments “in a timely way".
The Fed chair said the effect of tariff hikes on the US economy remains highly uncertain but if the announced increases were to be sustained, that would impact inflation, growth and employment.
The US Federal Reserve's current monetary policy is modestly, or moderately restrictive, Powell said.
Notably, the March Fed dot plot signaled two rate cuts in 2025. Next US Federal Reserve FOMC meeting in June.
That's it from our side! The live blog has ended.
Gold Price Dips; Bitcoin Up 2%
Gold prices fell after the US Federal Reserve announced a status quo in the benchmark lending rates. The bullion, which was already trading under pressure during the day, traded nearly 1.4% lower following the disclosure of Fed decision.
Spot gold was trading at $3,388 an ounce in the global market, down 1.32% at 2:30 pm (EST).
Bitcoin, however, gained as the world's largest traded cryptocurrency was trading 2.24% higher at 96,811.57 at the same time.
Jerome Powell Live: Meeting With President Trump
"I've never asked for a meeting with any president. Can't imagine myself asking for meeting with the president," Jerome Powell said.
Powell and Trump, who appointed him as Fed Chair during his first term, are yet to meet since the Republican leader's return to the White House in January.
Jerome Powell Live: Reaction To US-China Trade Talks
The US and China are reportedly talking trade in Switzerland.
When asked about a potential deal, Jerome Powell said, "We seem to be entering a new phase for trade, where negotiations are starting. That could change the picture materially or not. We’re mindful about not making conclusive judgements at a time when the facts are changing."
He said trade and fiscal policies are the mandate of the US government and won't comment more on the matter.
US Fed Meeting Live: Direction For June
The March Fed dot plot signaled two rate cuts in 2025. Next US Federal Reserve FOMC meeting in June.
Jerome Powell Live: Reaction To Trump Pressure To Cut Rates
When asked about pressure from US President Donald Trump on the Federal Reserve to cut rates, Jerome Powell said, “It doesn’t affect doing our job at all. So, we are always going to do the same thing -- which is, we are going to use our tools to foster maximum employment and price stability for the benefit of the American people.”
Jerome Powell Live: Achieving Policy Goals Getting Tough For US Fed
"The Fed doesn’t publish a forecast on the likelihood of a recession. It may be that at least for the next year, further progress isn’t being made toward the Fed’s policy goals," Powell said.
Jerome Powell Live: Current Rate Policy Moderately Restrictive
The US Federal Reserve's current monetary policy is modestly, or moderately restrictive.
Jerome Powell Live: No Hurry To Adjust Rates
"We think we can be patient, we are going to be watching the data," Powell said.
"We can move quickly when that’s appropriate," he said.
Jerome Powell Live: Fed Chair Flags Tariff Shocks To US Economy
"Tariffs, if sustained, are likely to generate a rise in inflation, a slowdown in economic growth and an increase in unemployment," said Jerome Powell.
But the effects on inflation could be short lived, reflecting a one-time shift in the price level, accordong to the central bank chief.
“It is also possible that the inflationary effects could instead be more persistent. Avoiding that outcome will depend on the size of the tariffs effects, on how long it takes for them to pass fully into prices and ultimately on keeping longer-term inflation expectations well anchored," Fed Chair Powell said.
Jerome Powell Live: Fed Chair Addresses Tariff Concerns
Powell said US businesses brought goods in March to get ahead of the new duties that kicked off in April.
Surveys of households and businesses have deteriorated, due to “trade policy concerns,” Powell acknowledged.
The Fed chair said the effect of tariff hikes on the economy remains highly uncertain but if the announced increases were to be sustained, that would impact inflation, growth and employment.
Jerome Powell Live: Inflation Risks Up
The risks of higher unemployment and inflation have risen, and the current policy stance leaves the Fed “well positioned” to address economic developments “in a timely way,” Powell said.
US Fed Meeting Live: Jerome Powell Starts Speaking
Watch US Fed Chair Jerome Powell's speech here:
US Fed Meeting Live: Waiting For The Trump Post
Markets are not just awaiting the US Federal Reserve Chairman Jerome Powell's press conferece, they are also keeping an eye on President Donald Trump's Truth Social and X handles.
Trump is known to deliver unfiltered opinions through his social media posts.
US Stock Market Live: S&P 500 Down
The S&P 500 is down 0.4% after the US Fed decision and ahead of Chairman Jerome Powell's media briefing.
Telecom and communication stock are down the most while healthcare and financial stocks are up.
US FOMC Live: Dollar Firm
The US dollar was firm after the US Fed rate decision. The dollar index is up 0.2% to 99.44.
The greenback is higher against the Japanese yen, Euro and the British Pound.
FOMC Live: US Bond Yield Down
The yield on the benchmark 10-year US Treasury bond is down three basis points at 4.26%
US FOMC Live: Wall Street Mixed After Fed Holds
The US stock market remained mixed after the US Federal Reserve decision.
S&P 500 down 0.4%
Dow Jones up 0.05%
Nasdaq down 1%
US Fed Meeting Live: FOMC On Inflation
"Inflation remains somewhat elevated," the FOMC of the US Federal Reserve said, just like in March.
The latest US inflation gauge showed flat monthly change for the core measure -- but 2.6% on a year-on-year basis. Still above the 2% Fed target.
US Fed Meeting Live: FOMC On Labour Market
"The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid," the FOMC of the US Federal Reserve said.
US Fed Meeting Live: FOMC Flags Uncertain Economic Outlook
The Jerome Powell-led FOMC said although swings in net exports have affected the data, recent indicators suggest that US economic activity has continued to expand at a solid pace.
This is the key line from the FOMC statement:
“Uncertainty about the economic outlook has increased further.”
US Fed Meeting Live: FOMC Keeps Interest Rates Steady
The US Federal Reserve FOMC has decided to keep the interest rate unchanged at 4.25-4.5% range for the third time in a row. All 12 members of the panel voted in favour.
US Fed Meeting Live Streaming: Where And How To Watch The FOMC Meet?
After the conclusion of the two-day meeting, the FOMC will announce its policy decisions at 2:00 p.m. Eastern time on May 7 (11:30 p.m. IST). The press conference following the meeting by Powell will be streamed live on the official YouTube channel of the Fed Reserve and NDTV Profit's YouTube channel. The media briefing begins at midnight, India time.
The Federal Reserve will also live stream the press conference on its official social media platforms, allowing the public and investors to track the live updates.
You Can Watch The FED Live Streaming At:
Federal Reserve YouTube channel: https://www.youtube.com/federalreserve
Federal Reserve X (formerly Twitter) handle: https://x.com/federalreserve
Federal Reserve official website: https://www.federalreserve.gov/live-broadcast.htm
Fed Rate Decision LIVE: S&P 500, Dow Jones Edge Higher
Even as the tech-heavy Nasdaq Composite edged lower by 0.14%, S&P 500 and Dow Jones Industrial Average moved ahead, rising by 0.24% and 0.72%, respectively, minutes before the Federal Reserve's decision on benchmark lending rates.
Fed Rate Decision LIVE: Will Trump Act Against Powell?
Although President Trump has sounded fiercely critical of Powell, he has ruled out firing the Fed chair before the conclusion of his term. “Why would I do that?” he said on Sunday, during an interview when asked whether he would sack Powell. “I get to replace the person in another short period of time," Trump added.
Fed Meeting LIVE: Will Powell Defy Trump Again?
Despite President Trump's reiterating the call to cut interest rates, the team led by Powell is expected to defy him again. With their eye on inflation, officials are inclined to hold rates steady, Bloomberg reported earlier this week. However, fears of a slowdown are mounting, which has been cited by Trump and his aides while nudging the Fed towards expedited rate cuts.
Fed Rate Decision LIVE: What To Expect
The Federal Reserve's decision on benchmark lending rates, to be disclosed in around an hour from now, will remain keenly watched by the markets worldwide. The expectation largely is that the Fed will hold rates steady in the range of 4.25-4.5%.
According to CME FedWatch Tool, there is a 97.7% expectation of Fed maintaining status quo.
Jerome Powell Live: Holding Charge While Trump Raises Heat
As fears of a US economic slowdown mount, thanks to Trump's tariffs, the US President and some of his deputies keep hammering the Federal Reserve for an interest rate cut.
Caught in that bind, Fed Chair Jerome Powell may have been comforted by healthy employment data. As long as the US labour market holds firm, the Fed can more easily justify standing pat.
Meanwhile, the Fed’s favored inflation gauge showed price pressures continued to slowly ease. While the Fed would typically welcome such a cooling, higher US duties on imports risk upending the progress they’ve made on inflation.
The White House is pursuing trade deals on the tariff front across the world that could once again shift the landscape, a nightmare for anyone trying to forecast future economic conditions.
US Fed Meeting Live: Dot Plot From March
The March Fed dot plot showed a significant shift in policymakers’ rate cut expectations. While the median still signals two cuts in 2025, projections have become more dispersed:
Nine officials anticipate two cuts, down from 10 in December.
Eight policymakers now expect one or no cuts, doubling from four in December.
Two foresee three cuts, while none expect more than that—compared to five in December who projected at least three cuts.
FOMC median forecast shows rates at 3.4% in 2026 and 3.1% in 2027
FOMC median forecast shows 2025 GDP at 1.7% versus 2.1% in December.
US Fed Meeting Live: FOMC's March Decision
In its March meeting, the FOMC kept interest rate unchanged at 4.25-4.5% range for the second time in a row. The Federal Reserve voted 11-1 in favor of the monetary policy action. The majority, led by Chair Jerome H Powell, supported the decision.
The sole dissenter, Christopher J Waller, opposed the move, advocating instead for no change to the federal funds target range and a continued reduction in securities holdings at its current pace.
Economic uncertainty has risen, prompting the Federal Reserve to take a cautious approach to future interest rate decisions, the Fed said in a statement.
US Fed Meeting Live: Expensive Stocks
The recent recovery rally in US equities has made them pricey once again, leaving little room for error when the Federal Reserve provides a monetary policy update.
Within a few weeks, investors went from slashing exposure to risky assets to chasing the sudden sharp rebound — one of the strongest in 75 years. Buoyed by resilient earnings and expectation that trade deals could be around the corner, stocks are back to being expensive, especially in the US.
The Fed is widely expected to hold its rate policy steady on Wednesday. Options markets expect a one-day move of 1.1% for the S&P 500 Index after the meeting, according to data from Goldman Sachs Group Inc. Investors will closely be watching Chair Jerome Powell’s remarks, especially on the impact of tariffs on the economy, to gauge the path of the central bank’s decisions from here.
(Source: Bloomberg)
US FOMC Live: Powell To Signal Direction Amid Tariff Troubles
The US Federal Open Market Committee (FOMC) is holding its scheduled meeting on May 6-7. This meeting of the US Federal Reserve, led by Jerome Powell, will evaluate current economic conditions of the world’s most powerful economy.
During this session, FOMC will consider whether changes to the interest rates are necessary, which could impact the direction of the US monetary policy. The current rates of 4.25% to 4.5% remain unchanged since December 2024.
The FOMC typically meets eight times annually to discuss matters related to US inflation and interest rates. However, this will be one of the most closely watched Fed outcomes, particularly by the US President Donald Trump, who wants the rates to be slashed, according to reports.
US Fed Meeting Live: Yields Unchanged
The yield on the benchmark 10-year US Treasuries was little changed at 4.29% ahead of the Fed rate decision.
US Fed Meeting Live: Dollar Firm
The US dollar was firm ahead of the Fed rate decision. The dollar index rose 0.22% to 99.46.
The greenback gained against the Japanese yen, but was steady facing the Euro and the British Pound.
US Fed Meeting Live: Stocks Trade Higher
The US stock market opened with positive momentum on Wednesday ahead of the Federal Reserve rate decision and signals from the Trump administration that trade negotiations with China will begin this week.
The S&P 500 saw an initial gain of 0.2%, while the Nasdaq 100 remained largely unchanged. The Dow Jones Industrial Average experienced a more significant rise of 0.4%.
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